Federal Reserve’s December Rate Cut Probabilities Stir Crypto Markets

2 mins mins

Key Points:

Federal Reserve’s December rate decision sparks market volatility.
44.4% chance of 25 basis point cut.
Crypto market sees increased institutional involvement.

The latest CME ‘FedWatch’ data reveals a 44.4% probability of a 25 basis point Fed rate cut in December, impacting crypto market dynamics as major players prepare for potential shifts.

This potential monetary policy adjustment could heighten market volatility, affecting investment decisions by institutions and individual traders alike, while fostering debate about future crypto market trends.

Fed’s Rate Decision and Its Ripple Effects on Crypto

Expectations are steering crypto trading strategies. Institutional voices emphasize strategic moves, with projections such as JPMorgan’s $170,000 Bitcoin target gaining traction. Meanwhile, retail sentiment follows influencers’ optimistic calls for accumulating assets.

Leaders like Daniel Wang have stated confidence in buying dips. Crypto community observes closely, with discussions revolving around macro indicators and past economic cues. Public statements and reactions underscore the mixed investor outlook.

Daniel Wang, Founder, Liquid Capital, said, “We insist that the current position is the best spot for buying the dip in spot assets, and we are optimistic about the subsequent market trends.”

Bitcoin’s Decline Amid Fed Speculation and Institutional Moves

Did you know? The last similar Fed rate rumor occurred in 2023, leading to short-term Bitcoin rallies. This repeat pattern illuminates asset sensitivity to macroeconomic changes.

CoinMarketCap data indicate Bitcoin trades at $95,772.83, showing a 1.37% decline over 24 hours. Market cap reaches $1.91 trillion, with 58.86% dominance. Trading volume records $69.52 billion, despite a drop in activity. Notably, Bitcoin’s supply nears its maximum, with only 19,948,812 in circulation.

bitcoin-daily-chart-4391 — Bitcoin(BTC), daily chart, screenshot on CoinMarketCap at 16:36 UTC on November 15, 2025. *Source: CoinMarketCap*

The Coincu research team notes that regulatory outcomes will shape institutional interest in the coming months. Experts believe the potential rate cut could bolster liquidity, moderating market volatility.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.